Lily invested 90,000 in an account paying an interest rate of 4.6% compounded annually. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach 221,200?

Solution

Lily invested 90, 000 in an account paying an interest rate of 4.6% compounded annually. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach 221, 200?

Solution

Time : 20

Solution steps

Translate the problem into an equation:

221200 = 90000 (1 + \frac{0.046}{1})^{1 \cdot t}

Solve for

t, 221200 = 90000 (1 + \frac{0.046}{1})^{1 \cdot t} : t = 20

Time : 20

Popular Examples

the sum of 6 times a number and 3 is 4 What is the original price of an item that costs 26.40 after a 65% increase?Eight more than the product of a number and 5 is equal to 9.Aubrey invested 7,100 in an account paying an interest rate of 5.6% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 19 years?Peyton is going to invest in an account paying an interest rate of 4.2% compounded continuously. How much would Peyton need to invest, to the nearest cent, for the value of the account to reach 39,000 in 17 years?